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Bitcoin StableCoin Reserve Ratio Signals ‘Bottom’ as Bulls Eye $124K


StableCoin Supply spiked to bear market levels, suggesting buyers could spark another leg for bitcoin (BTC) and crypto markets, according to analysts.

Key Takeaways:

  • Bitcoin StableCoin Supply Ratio in Bear Market Lows Signals BTC Price Below.

  • Rising Binance StableCoin Reserves and Falling BTC Supply indicate a buildup of buyer liquidity.

  • Bitcoin’s breakout breakout is targeting a recent high of $124,000.

Bitcoin Liquidity Signals “Turning Point”

Bitcoin’s stableCoin ratio is at levels that have historically marked bottoms for BTC, according to new analysis.

The StableCoin Supply Ratio (SSR) has returned to the “Lower Historical Range (13)-the same zone marked under mid-2021, and throughout 2024,” Cryptoquant analyst Morenodv write In a QuickTake Analysts, adding:

“Each time, Bitcoin trades quietly before staging a strong rebound.”

Bitcoin StableCoin Supply Ratio: Source: Cryptoquant

The low SSR suggests that StableCoin’s liquidity is quietly rebuilding, potentially setting the stage for a bullish rally or the final bullish leg of this cycle.

The Binance Bitcoin/StableCoin Reserve Ratio (SRR) tells the same story.

Related: Bitcoin Price Fills CME Gap, But ‘$240m Market Dump’ Halts A $104K Rebound

The chart below shows that StableCoin reserves on Binance are increasing, while BTC reserves are shrinking“A pattern that, time and time again, occurred before the market recovered,” said the analyst, adding:

“We are witnessing a liquidity adjustment that has only appeared a few times since 2020, and each time marked a pivotal moment for Bitcoin’s trajectory.”

Binance Bitcoin/StableCoin Reserve Ratio. Source: Cryptoquant

The growing supply of StableCoin suggests that there is an increasing amount of sidelined capital that can be deployed in the crypto market.

Historically, this pattern tends to appear during periods of structural collapse or seller fatigue, when weak hands exit and strong hands begin to accumulate quietly.

Meanwhile.

This metric reaches such levels when volatility is low, but losses realized onchain are high, which signals seller fatigue.

Similar levels in the past preceded volatility to the upside, with the latter leading to a 190% in BTC price to $74,000 in March 2024 from $25,300 in August 2023.

Count Cointelegraph reportedthe MVRV (market value to realized value) ratio also suggests that BTC may drop to $98,000 due to Seller fatigue.

Bitcoin’s falling wedge targets $124,000

The daily candlestick chart shows the BTC/USD pair trading within a falling wedge, after the price declined from the upper trend of the pattern at $107,000.

Falling wedges are usually reversal patterns, and BTC’s continued consolidation within the trendlines of the pattern suggests that the fall may be nearing its end.

“Bitcoin is trading in this falling wedge,” said analyst Mister Crypto in an X post on Tuesday, adding:

“The breakout is imminent now.”

A daily candlestick near $107,000 would confirm the pattern, clearing the path for Bitcoin’s rise towards the bullish target of the wedge at $124,000, which represents a 19% increase from the current price. It matches the ITS Previous peak was reached on August 14.

Bitcoin/USD daily chart. Source: Cointelegraph/TradingView

“The signal-off signal has moved back into a low-risk regime, showing that selling pressure is easing as Bitcoin recovers,” private wealth manager Swissblock said In the latest BTC review, adding:

“BTC now needs to regain $108.5k-$110k, confirming the recovery as risk stabilizes and goes to 0.”

Bitcoin Risk-Off Signal. Source: Swissblock.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.